Why traditional programmatic is holding you back

Let me start by saying that if anyone had told me six months ago that Applovin, a platform focused on app-based inventory, would surpass The Trade Desk in the programmatic game, I would have dismissed it—much like many dismissed Trump in 2024. But here we are. The market—and the media ecosystem—is now embracing app-driven, performance-first advertising. This shift carries crucial insights for CMOs in Asia.

The message from the programmatic world is clear: the traditional DSP model, built on commoditised and open web inventory, is no longer fit for purpose in today’s mobile-led, app-driven, connected TV-enabled Asian media ecosystem. Asia’s media landscape is evolving faster than any other market, and this shift demands immediate attention from regional CMOs.

Why this matters more for Asian CMOs

Asia is mobile-first. App usage here far outpaces other regions, and by 2030, mobile’s contribution to GDP is expected to cross $1 trillion. The region’s audiences are young, digitally native, and app-centric. In markets like Bangkok and Jakarta, in-app advertising isn’t just a channel—it’s the main event.

Despite this, many CMOs in Asia are still relying heavily on outdated DSPs that push open web inventory—inventory that barely moves the needle beyond upper-to mid-funnel metrics. Most DSPs hum to the sound of Burn, Baby, Burn—as in, burn through budgets and impressions as quickly as possible. Applovin’s ascendance highlights the urgent need for a data-driven, contextual pivot in the region. It’s time for CMOs to embrace performance-focused strategies that reflect today’s consumer behaviours and market realities.

App-based inventory: A smart investment for today’s Asia

Since programmatic’s early days, open web inventory has been the backbone of digital media. And with it came a never-ending battle against fraud, bots, low engagement, and brand safety issues. Issues that we still battle today. An app-centric media-mix model offers a solution that mitigates these problems. App inventory is more controlled, minimises fraud, and aligns better with the quality and engagement expectations of today’s regional CMOs.

An app-based approach provides access to audiences who are already invested in the in-app experience, offering brands high-value, contextually relevant consumers. This conversion-friendliness is crucial in Asia, where ‘perform or perish’ is often the rule in C-suites across the region.

It’s about performance, not platform preference

No, I’m not advocating for one platform over another. In fact, most inventory is accessible via multiple platforms. But the performance results we’re seeing from app-based inventory speak for themselves. For the record, Applovin’s algo works better than The Trade Desk when it comes to app-first buys. This I can attest to. Addressing performance demands and leveraging data for real results is more critical than ever in Asia. This is a region of rapid shifts: attention spans are short, customer loyalty is fleeting, and attribution constraints are real.

Investment decisions here are increasingly analytical and data-driven. Leaders who invest in platforms that don’t optimise for performance face a high risk of falling behind. Asian markets, in particular, don’t afford the luxury of building long-term brand value at the expense of immediate, incremental returns. Here, performance isn’t a nice-to-have; it’s a requirement.

Creative works better in context

There’s nothing worse than a wasted impression—except maybe a boring, irrelevant, and non-contextual one. Open web inventory is often overloaded with low-quality, commoditised ads packaged as ‘value for money’.

While that approach might achieve basic awareness, it rarely drives conversions. Consumers reward context. Platforms prioritising in-app and context-first ads have raised the creative bar, proving that programmatic doesn’t have to be a sea of poor-quality ads with occasional relevance. It can—and should—drive quality engagement throughout the funnel. They indeed drive better outcomes.

For Asian markets, where consumers expect personalised and high-quality experiences, creative context is directly proportional to performance. This is what separates leading brands from the noise, and it’s why choosing partners that deliver contextual relevance is essential.

The takeaway: A new programmatic playbook for Asia

Traditional programmatic models are no longer sufficient in a region where consumer behaviour and media consumption patterns are evolving so quickly. It’s time to prioritise app-based, performance-driven, and incrementally measured advertising that aligns with the mobile-first nature of the Asian consumer. When I say ‘app-based’, read ‘context-first’. Doesn’t matter which partner.

The future of programmatic in Asia isn't just context-first—it's AI-powered and app-centric. CMOs who embrace this trifecta of transformation will find themselves ahead of the curve, while those clinging to traditional programmatic models risk being left behind in an increasingly sophisticated marketplace.